ML20055A386
ML20055A386 | |
Person / Time | |
---|---|
Site: | Comanche Peak ![]() |
Issue date: | 03/31/1982 |
From: | Campbell R, Skelton J TEXAS POWER & LIGHT CO. |
To: | |
Shared Package | |
ML20055A370 | List: |
References | |
NUDOCS 8207160239 | |
Download: ML20055A386 (37) | |
Text
TexasPower& Light Company 1981AnnuaiReport 8207160239 820706 PDR ADOCK 05000445 I PDR
3 Report tD Stockholders Is Power & Light Company ~ ~
ibsidiary of Texas Utilities Company Per Cent 3 At A Glance 1981 1980 increase perating Revenues
- __ _ _ _ _ _ _ _ _ _ _.
$ 1,183,659__ _ $ _.992,155_. _113_
perating Expenses * $_ _ 960,047 $ 791,930 21.2 al Cost per Milhon Btu 163.1c 131.2c 24.3 pstruction Expenditures (Excluding Nuclear Fuel)*
$ 352,110 $ 409.806 (14.1)
$ 3,478,003 $ 3,140.209 10 8 pctoc Plant (End of Year)*_ _ _
S 4,646 $ 4.372 6.3 ht Investment per Customer k Demand (Megawatts) _ . _ _ __ _ 5,S29 5.861 1.2 tnc Energy Sa'es (Megawatt hours) . 27,147,451 26.467,419 2.6 mber of Customers (End of Year) 748,569 718 238 4.2
!sidential (Average):
nnual Kwh Usage per Customer _
11,922 12.970 (81)
Cost to Customer per Kwh 5.41c 4.55c 18 9 housands of Donars) ta] Power & Light Company Contents s incorporated under the laws of the State of Texas Management's Message to Stockholders,2 7912. The Company is an investor-owned electric Operations
.ty engaged in the generation, purchase, transmis- Construction, 5 n, distribution and safe of electricity wholly within Fuels, 7 State of Texas. The Company, Dallas Power & Operating and Financing Costs,9 Iht Company and Texas Electric Service Company, Financing System Expansion,11 ose systems are interconnected, are subsidiaries Rates Regulation and Litigation,11 Texas Utikties Company. Service to Customers and Area Growth,15
'he Company serves customers in 432 commu- Public Affairs,17 es in 51 counties of North Central and East Texas. Employees,17 ven of these communities have populations in Research and Development,19 cess of 50.000 and 34 have populations of 10,000 Financial Statistics and Operating Statistics,20-21 S0.000. The temtory served has an estimated pop- Management's Discussion and Analysis of ition of 2,388,000 (at December 31,1981) and Financial Condition and Results of Operations,22 ludes the agricultural blacklands of Central Texas, Financials r farming and ranching sections north and east of Accountants' Opinion, 23
!!as, part of the oil and gas fields of East Texas and Balance Sheet,24-25
- Dallas Ft. Worth Airport. The area has a highly Statements of Income and Retained Earnings,26
'ersified base of hght and heavy manufacturing and Statement of Source of Funds for Const;uction,27 astantial commercial activities. Notes to Financial Statements,28 Supplementary Information Concerning Effects of Changing Prices,32-33 Officers, Directors, Executive Committee,34-35 System Map,36 1
Letter to Stockholders Although the Company's operating revenues in-The management of Texas Power & Light Com- creased 19 3 per cent over 1980, operating expenses pany constantly recognizes its responsibilities to its increased 21.2 per cent. The Company's net in-customers, stockholders and employees. We are come was $182.276,000 in 1981, a 12.8 per cent keenly aware of the interests of each group and we increase over 1980.
are dedicated to serving these interests equitably. The nation's economic climate in 1981 was one in The Company must, and it will, plan properly which the Company faced the prospect of issuing for the future. To accomplish this, the Company has bonds with an interest rate of 17W per cent, the instituted a more extensive and formalized corpo- highest yield in TP&L history. The Company was able rate planning process. The process includes setting to maintain its tnple-A bond rating and was able certain objectives, making assumptions regard- to obtain long-term financing.
ing key future events. and working uniformly to meet The Company's construction expenditures in 1981 the objectives. were approximately $352.000,000 (excluding nu-For example, we have assumed that the popu- clear fuel) and projections call for approximate lation served by TP&L will continue to grow at a faster amounts of $392.000.000 in 1982, $392.000.000 in rate than the population of the nation or of 1983 and $399.000.000 in 1984. These are the state. amounts that are manageable and amounts that With this in mind, the Company has established a should allow us to meet customer requirements for goal to produce at least 50 per cent of its con- electricity.
struction cost requirements from operations. Cur- In January 1981, the Company completed an rently, about 48 per cent comes from operations. agreement for Tex-La Electnc Cooperative of Texas, in order to do this, one corporate objective is the Inc. (Tex-La) to purchase an interest in the Co-reduction of TP&L's firm peak load by 465 mega- manche Peak nuclear project, subject to Tex-La's watts, compared to that peak which would otherwise ability to obtain long-term financing arrangements.
occur in 1985. The "ExCELL Program." as well as In February 1982, the agreement was amended.
Other programs, is aiding in reaching this goal. subject to regulatory approvals, to reflect a lesser The year 1981 brought many chal!enges to the Tex-La interest in the project. Details will be found Company and to the electric utility industry as in the " Construction" section of this annual report.
a whole. In March 1981, and again in February 1982, the in August, the Company met a new peak demand Company made applications for rate adjustments to of 5.929.000 kilowatts This peak surpassed last state and local regulatory authonties. Based on year's record of 5.861.000 kilowatts recorded during the March 1981 appl: cation, the Public Utility Commis-the hottest summer ever experienced in the ser- sion of Texas (PUC) authorized an increase in rev-vice area This represents a 1.2 per cent increase enues of approximately $57 million, or 5.6 per cent.
Despite the Company's intensive energy con- New rates became effective with consumption servation programc and the efforts of many thou- after August 7,1981. The adjustments proposed in sands of customers to minimize their use of February 1982 will. if approved, increase revenues electricity, energy sales increaseo 2.6 per cent. This approximately $188 million, or 15 2 per cent. The was attnbutable primanly to the more than 30,000 hearing before the PUC concerning this application customers added during the year. The average an- will begin in April 1982.
nual residential customer usage declined 8.1 This request for rate relief is necessary be-per cent cause revenues produced with existing rates are not sufficient to cover all costs of providing reliable electric service and, at the same time, permit the continuation of our construction program in addition, more revenue is needed to cover rising costs caused by inflation in all parts of our business.
During the past year. the Company started a vig-orous program of load management The Excel-lence in Customer and Employee Load Leveling.
or "ExCELL Program." meant a savings not only for customers who installed high-efficiency electnc l
2
l equipment, but also for all customers and the Com- The directors and officers of the Company appreci-pany because of a reduced need to build gener- ate the support of stockholders and employees.
ating facihties. With your continuing support, Texas Power & Light will In the period from October 1980 to year-end 1981, provide its customers dependable electnc service twenty Consumer Representative Meetings were at the lowest possible cost, commensurate with good held throughout the service area. Minonty representa- business practice, in the years ahead.
tives, labor leaders. business and industry spokespersons and others met face-to-face with top management. These customers expressed can-didly their views and opinions of Texas Power & Light Respectfully submitted, ,
Company. These meetings offer the Company the '
opportunity to better understand the concems and ,
needs of its customers They will continue to be <
an important part of our consumer affairs program. J. E Skelton One of the significant ways the Company can bet. Chairman of the Board ter sntve its customers is by stnving to raise the productivity of its employees. TP&L began in 1981 a campaign to bnng its productivity level to the high-est possible point. An in-house Productivity Con- R. K. Campbell sutting Team assists the Company in developing ways President and Ch/e/ Executive to improve internal communication and operating Dallas, Texas procedures. March 31,1982 Whatever corporate objectives the Company has, they are meaningless without public understand-in0 and approval of the things TP&L is doing on the wnole. The Company will work to improve com-munications with the pubhc so people can under-stand principles behind the objectives TP&L has established E. Coy Stanphill was elected Vice President-Admin-istration in November 1981. Mr. Stanphill joined the Company in 1955 and, poor to being named Manager of Purchasing in 1976, he served in several managenal capacities. Mr Stanphill is responsi-ble for the functions of the Administrative Services.
Corporate Planning, insurance and Claims Per-sonnel and Purchasing departments E,
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Construction Generating Units Under Construction or in Design Net capabc ty in 1981, Company construction expenditures were N'^ "')
approximately $352.000.000 (excluding nuclear fuel).
Approximately S172,000,000 of that total was for new Pant and un.t c7 or L ocaton Fuei No Totaf patonfa) seN te(b) ignite and nuclear-fueled generating units. It is esti.
mated that construction expend:tures for 1982,1983 Comanche Peak -- J1 1.150 362 1984 and 1934 will be approximately $392,000,000, Somervell County 12 1.150 362 1985 5392,000,000 and $399,000,000. respectively. Tun oak ~ Lignce j 1 750 562 1988 Eight lignite-fueled generating units, owned jointly Robertson County 12 750 563 1990 by TP&L. Dallas Power & Light Company (DP&L) and Forest G'ose - 1989 1 750 150 HeNe_rson Coun{L gnite- _ _ _
Texas Electric Service Company (TES). subsidiaries of _ _
Texas Utihties Company (TU) were in operation at the Maan Lae - Lignite 4 750 244 1990 CounN end of 1981. TP&L's ownership interest in these units
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.s shown in the table below. A ninth linnite a unit' *r*"v Das'Eec?c Poner acd Te Var *r Lake No 4 - 32.1% Focest Groi,"e - 20%
ccmrv pancav e ret cacat nt, ar'd ces: d o nes g, v co reo *m cauas Sandow Unit 4 is wholly owned by the Company and Poner Temas E ecuc Tesas Vorcpa# Power Agercy Tea La E ecir.c Coope awe d was placed into commercial operation in May 1981. Te as irc ne tai ro B azos Eecmc Po er cooceme irc carecne ee, -
IP&L system capabihty for peak lignite generation in 3Mp">'M"ja7laf7r,Yet '$'aEa#a *2[s
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- * * " " oa" 75% *# c ap "v a"d 'o% o' cost ** *" a**' 5o 1981 was 3,003 megawatts. megana~s from A.coas stam d eacn urd avadaD+e derg pean perods toi smeco avowai d va,cus eg;aw agere es ocwg me Nuclear RegJaw Jointly Owned Generating Units in Service Corrnssor o ine case d Correche Peam
. M3' "s> As a result of a continuing review of current eco-
$c7 Nc' nomic conditions and the cost of financial resources,
% ntana una Locat on Fuei No eat on Tsa: pa' ion announcement was made in October 1981 of delays B.g Brown - 33A 575 191 in the in-service dates of the above lignite units. Twin Freestone County 9"" Jl2 1 33h _575 192 Oak Unit 1 from 1986 to 1988, Twin Oak Unit 2 from 1 50 575 287 1988 to 1990.
Montceno 575 288 Lqn.te 2 50 Tdus County 3 50 750 375 Mart n Lake - 0 t qnite 2 60 gramenedomm Rusk County suam 3 30 750 225 1 ! ! l !
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At year-end, four hgnite-fueled generating units i ! i ,.
which TP&L will either jointly own with DP&L and TES ! l l I ,,,,,,
or jointly own with Alcoa. a large industrial customer, ! ! ,,,,
were in design or under construction at three plant ,,
sites. Total capabihty of these four units will be 3,000 _
megawatts, of which TP&L will own,1,519 megawatts.
Construction of two 1,150.000-kilowatt nuclear- ,
fueled generating units at the Comanche Peak plant t'72 73 7+ ~"> '" 77 =- '" * - - ' ' ' -
was 78 per cent complete at the end of 1981. The plant will be jnintly owned by TP&L. DP&L. TES Texas Municipal Power Agency. Tex-La Electric Cooperative , ,
of Texas, Inc. (Tex-La), and Brazos Electric Power ,,,, w .
Cooperative, Inc.
The table at right above shows location, type of --
fuel, total capabihty, TP&L capabihty and the years in a oo, I
which the four lignite and two nuclear-fueled generat- l ,.
ing units now under construction or in design are i i scheduled to be placed i 1 service. j
.sco 2.000 1972 73 - 74 75 W 77 =W 79 W '41 Bozell & Jacobs Building, IBM Towers and Las Colinas Towers East, office bui: dings at Irving, center around a clock tower.
Four elevators in the tower provide convenient access to a psrking gsrage. 5
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i As a result of the annual revtew of the construction Fuels i program, comp!etion date of Comanche Peak Unit 1 Several facts about tJel within the To&L hstem has been changed from 1982 to 1984 and Unit 2 from must be considered (t) Qel mt.st be r.sebble to 1984 to 1985 operate generating units; (2) the fuH resourci/ must In January 1981, the Company completed an be diverse and (3) overall, fuel will sont noe is be agreement to sell a 4% per cent undivided interest in more costly.
the Comanche Peak nuclear plan', nuclear fuel and in 1968, the Company started 00nstructing its first modem-day lign:te-fueled genera'ing plant near
'asseciated transmission tacdities to Tex-La for Fairfield, Texas When the Big Brown plant was com-
- appronmately $90 mnlion for that portion of the plant cleted in 1971. it started the Company's progress
,and related facilities completed through December 31,1980 Such sa!e was subject to regulatory from a position of total sependence on rattM gas to
- approvals and Tex-La's ability to obtain long term a 1981 position of us.ng solid fuel; to generate 56
' financing arrangements in January 1982, Tex La note per cent of its energy
- Sed the Company that it had been unable to obtain in a penod of five years, TP&Ls generatior.Oy type ,
long-term financing in an amount sufficient to support of fuel changed from apprc.fimately 67 per cM , ';
- a 4M per cent partepation and requested that con. gas and 33 per cent lignite coalin 1976. to aoprox-
! sideration be given to reducing such participation to imately 44 per cent gas and 56 per cent lignite ,
2A per cent in February 1982, the Company con. in 1981.
TP&L's share of lignite generating units. either in
. Curred in the Tex-La request by agreeing, subject to design or under construction, will supply an addi-
, regulatoiy approvats and the completion of Tex-La's tional 1,519 megawatts long-term financing arrangements, to assume the 2A Lignite reserves which Ve recoverable la surface ,
per cent ownership interest released by Tex-La. As a mining are located adjacent to ngnite-fueled vn- g result, the Company will refund approximately $65 etabng units in operation, under constru hen or million for that portion of costs and interest expended -
m oesign.
by Tex-La for the 2% per cent interest assumed by At the end of 1981, TP&L, DP&L ano TES. along with the Ccmpany Alcoa, a large industrial customer, owned in fee Mod,fication of an existing gas-fueled unit at the ~
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Valley generating plant was completed in 1981 Thk modification will enable operation of the unit to gg gj . gM *-,-
increase system efficiency and reduce the cost of fuel w :: ,
to customers through improved fuel usage. _gLLgLLQ11RLp_ i(,( !J Dunng 1981, approximately $125.000.000 was expended for transmission, distnbution and general 3 QLh-QhkLhQ 7tHtb3 QN4-L+- '
m improvements of the Company's system to ensure that ~iti itiTi~ ' " -('
reliable service continues for all customers.
in order for customers to be better served by the KITJi-*
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Company, new offices were completed at The Colony,
- DaSotc. Gainesville, Grapevine, Irving and Tyler.
- Enlarged and improved facilities were placed in use on u , ,- .- , . . . -.
at Buffalo, Ennis, Lancaster McGregor, Sherman and gg umr= '
Waco- -
Construction expenditures necessary to meet
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(. fuel T federal, state and local reg iations dealing with ,
environmental protectica continue to be significant.
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ment ,alated equipment at lignite-fueled generating I~ I CC C l _Z /
units were approximately $27,500.000. Although the ! L !H E il h 1 m
q Company believes many of the requirements of reg- _ ]
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.I ulatory authonties are questionable on a cost / benefit __ _-__ J ,,
basis, all generating units under construction are L ,
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designed to comply with current regulations con- @ ;. ..
1 ceming air and water emissions. (,
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Tha Hooper-Schaefer Fine Arts Center on the campus of ,
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or had under lease an estimated 880 milhon proven all existing hgnite-fueled generat:ng units. including retwerable tons of hgnite coal. Sandow Unit 4 is the additional costs of operating and mainta:ning owned by TP&L and is fue!ed from hgnito deposits the pollution control equipment required in connec-Unned by Alcoa tion therewith. However, as a result of the Com-Commitments ham been obtained for anticipated pany's efforts to maximize the use of lower-cost uranium ore concentrate requirements and tab- bgnite-fueled generation, increases in fuel costs were ricat!on services for the first 17 years of operation of moderated; thus the Company's customers paid the two nuclear-fueled generating units at the Co- considerably less per kilowatt-hour than would have manche Peak plant which is non under construction. been the Case if natural gas or oil had Deen used These units will amount to approximately 8 9 per At December 31.1931, the Company's embedded cent of IP&L's generating capabihty when both units costs of long term aect and preferred stock were are in operation. Uranium hexafluonde conversion 8 8 per cent and 8 0 per cent, respectively The up-services have been contracted for through 1987 and ward trend in these costs, as shown by the chart uranium enrichment contracts, having a duration below. is expectea to continue as the Company's of appronmately 30 years, have been made with the need for long-term f:nancing continues and capital Department of Energy market interest and dividend rates continue to re-Fuel for TP&Ls eight pnncipal gas and gas / oil- main higher than the Company's embedded costs.
fueled generating plants is provided by three major Pre-tax interest coverage (including the Company's supphers One of these supphers is Texas Utikties allocab!c share of interest on Texas Utihties Gen-Fuel Company (TUFCO) a subsidiary of Texas Utihties erating Company (TUGCO) and TUFCO Senior Notes)
Company Apprommately 48 per cent of the Com - a major factor in determining the cost of debt pany's gas requirements dunng 1981 was supphed as well as the overall costs of capital - was approx-by TUFCO imately 3 5 times. Periodic rate increases, such Oil is stored at the gas and gas / oil-fueled facih- as the rate request filed on February 12,1982 (see ties for use only in emergencies as is the case when " Rates, Regulation and Litigation"), will be re-certain gas supphes are curtailed At the end of quired in the future to provide an adequate retum on 1981, TP&L had approximately 1.5 milhon barrels of oil in inventory The total cost of all fuels used dunng 1981 to meet Times Earned-Total inismet Charges' the electncal needs of Company customers was o
$495,770,000, an increase of 21.6 per cent over _ ,,
fuel costs for 1980 The cost was 163.1c per milhon Btu in 1981, compared to 1312e in 1980
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Three major factors cause the costs of fuels j __ .i_j jj]_
o charged to customers to vary. (1) increased con- __ i g , I : } g sumption caused by extreme temperatures; (2) 11_ . , _
Variations in the mix of types of fuels used in generahng plants; (3) vanations in the unit costs
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of fuels nn n n n n n n -n u e In 1981, TP&L installed a new computer system *sw niai which logs cntical information from all generating plants and major substations With this system, the hM FNW Company is able to analyze quickly the status of and PM fuel and generation and make changes to ensure , ,
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the rehability of service to all customers
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Operating and Financing Costs ~~i~ , i t
The increase in operation and maintenance ex- [F ,
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penses, other than fuel, resulted from continuing infla- , ~J '
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tianary pressures on the cost of labor, matenals , 1 ;~'* I ~ i ~ ] ^-- "
and services, and from the addition of a hgnite-fueled ~ i ~}'"-~" } 'i ~ i - i ~
generating unit, Sandow Unit 4, in May 1981. Opera- ,m. n n n n n n n . ."
tion and maintenance expenses were also affected mun e"" o* su p *"dS**
by the higher costs of operating and maintaining The most recent expansion of the Professional Plaza at Temple is Medical Plaza Noe th which houses 8 medical offices. 9
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common equity, protect the quahty of the Com- Rates, Regulation and Litigation pany's secunties and enable the Company to acquire in August 1981, the Company received a final new capital at reasonable rates. The Company order from the Public Utihty Corrmission of Texas can best serve its customers if it is financially strong, (PUC) which authorized an increase in revenues of and with the net result being dependable service approximately $57 million, or 5.6 per cent. The new at the lowest possible cost. rates became effective for all customers for en-The conservative capital structure of the Company ergy consumed after August 7,1981.
is a result of its commitment to protect the quality Prior general rate levels were estabhshed, effective of its secunties and ensure the lowest cost of capital. May 27,1980, by upward adjustments in electric At December 31,1981, long-term debt, preferred service rates. The adjusted rates were designed to stock and common equity comprised 44.8 per cent, increase operating revenues for the test year ended 11.6 per cent and 43 6 per cent, respectively, of September 30,1979 by approximately $81.9
' total capitahzation. milhon, or 10 per cent. In July 1980, Tex-La filed suit in the 126th Judicial District Court of Travis County, Financing System Expansion Texas and the Community Center of Stafford-In 1981, the Company financed 48 per cent of Armstrong Addition of the City of Seagoville, Texas, et al, filed suit in the 53rd Judicial Distnct Court of its construction program from internally generated funds. It is the Company's goal to finance a mini- Travis County, Texas, for review of the PUC order mum of 50 per cent of its construction expenditures granting the Company its May 1980 rate increase.
internally. In addition to net income after divi- Each of the suits seeks a reversal of the order and a dends, internally generated funds were derived from refund of all payments made by the plaintiffs depreciation and from deferred federal income thereunder.
In February 1982, the Con pany made application taxes and investment credits. The balance of the 1981 construction program was funded from external for rate adjustments to the PUC and to those in-sources as outlined below. corporated municipalities which exercise original In March 1981, the Company sold 3,000,000 shares junsdiction over the Company's electric rates within of its common stock to Texas Utihties for $85,500,000.
In September 1981. the Company sold $75,000,000 g principal amount of 17W per cent First Mortgage gna,y n Bonds, due September 1,2011. In connection with .
==
this sale of securities, the major credit rating l l f }
agencies reaffirmed their confidence in the Com-l ,_
i i { ! I pany's securities by continuing the triple-A rating on 7 j j i the Company's First Mortgage Bonds. l l
==
In November 1981, the Company, DP&L and TES sold $70,000,000 pnncipal amount of 13h per cent First Mortgage Bonds, Pollution Control Series A, the ""
Company's share being $34,510,000. The proceeds ==
from this sale are for the purpose of funding construc-tion of pollution control equipment at the lignite generating plants.
On March 31,1982, the Company sold an addi- . Costof UWngvs. Cost per KWH tional 2,500,000 shares of common stock to Texas Pe e r Utihties for $75,000,000. The proceeos from this sale
- l l j j [ "
will be used to repay short-term loans from Texas i I i i i Utihties, and to fund a portion of the 1982 con-struction program.
""ggnes nucus-s 7
Financing the remainder of the 1982 construction l ! I L !I m program will require additional funds from exter- ! ! I ~ m nal sources. The Company expects to continue to ! - I' =
obtain short-term loans from Texas Utilities for interim - + ' ! O =
financing and also expects to obtain additional ,,,, d ; y _, , d ,J, l, , , , , , , , , "
permanent financing in amounts and of types pres- con-ncom eu=a un- swace ently undetermined.
Eldorado is an 1,100-acre residential community at McKinney, centered by the Eldorado Country Club. The first phase includes 113 tots with some 30 homes completed or under construction. 11
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l their corporate hmits The proposed rate adjustments, (FERC) Interconnections are maintained with the
- if granted, are estimated to increase the Company's member systems of the Electric Rehabihty Council of operating revenues by approximately $188 milhon, Texas (ERCOT) which also operate entirely within or 15 2 per cent for the adjusted test year ended the State of Texas. Central and South West Corpora-
- September 30,1981 The heanngs before the PUC will tion (CSW) a holding company, has an interstate begin in Apnl 1982. system which is part of the Southwest Power Pool in Apol 1979, the PUC reported findings of its (SWPP) and a Texas intrastate system which is part of
. investigation of certain transactions between subsidi- ERCOT. For the past six years, CSW has been in-i anos of Texas Utihties Company. including TP&L volved with the Company, DP&L, TES and other mem-While the PUC concluded that the transactions were bers of ERCOT in a dispute relating to synchronous
. generally in the public interest, the PUC did re- interconnections between SWPP and ERCOT. The prin-
- quire a refund of $12 million to customers of the cipal issues in the dispute have been the Com-Company Certain provisions of the order issued by pany's concern for the reliabihty of its system and
- the PUC were appea!ed by the Company and objection to being subject to the general jurisdiction 4
other parties to the Distnct Court of Travis County, of FERC. This controversy has been contested in Texas In December 1981, the Court entered a judg- numerous forums, including proceedings before ment which concluded that provisions of the FERC. In January 1982, FERC issued an order approv-Texas Pubhc Utihty Regulatory Act require a prior ing a settlement among the various parties which
- determination by the PUC of the reasonableness of provides for the establishment of two direct current the charges involved in transactions among affik- asynchronous interconnections between SWPP ated interests which are to be recovered through fuel and ERCOT. The settlement is made on a basis which adjustment clauses The Court oid not order ad- would not subject the Company to the general ditional refunds or require pena!!ies to be levied, but jurisdiction of FERC. It is expected that the htigation asked that these matters be considered further and various administrative proceedings related to by the PUC on remand. The Company. DP&L and TES this dispute will be terminated in connection with have appealed the order entered by the Court In the settlement.
the intenm, the Company has filed a request with its rate regulatory authonties seeking authorization for a new procedure to provide for prior approval of
, payments to affikates lhe Company operates entirely within the State of Texas and is not subject to the general junsdiction of the federal Energy Regulatory Commission RstidIntlil Customer Usage and Cost l Average Annual KWH Usage Average Cost per KWH Average Annual Eiectric BJi per Customer 14 000 7: $700 b 6: $600 10.000 5: '$500
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8 000 4 $400 l
4 000 2c $200 IlI Il
- 1951 56 61 66 71 '76 81 1951 56 61 (6 71 76 81 1951 56 61 66 71 '76 81 The TImple-Eastex Corporate Office at Diboll. The firm producss integrated forest and building products, 13
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I Service to Customers and Area Growth serving improvements and provide cost estimates.
Throughout the 51-county area of Texas served These audits complement the "ExCELL Program"
. by the Company, the number of customers and the by encouraging energy management among residen-
, population are increasing in a steady, healthy tial cus'omers.
' pattern. In 1981, the Company's Home Service Advisors l
At year-end 1981. TP&L had 748,569 customers expanded their home energy management programs
- and the Company's service area had a population of to include such groups as elementary school stu-
' 2,388.000 At the end of 1980, there were 718.238 dents, realtors and "ExCELL" prospects.
i customers and an area population of 2,305,000. Many workshops were conducted through the
' These figures represent an increase of 4.2 per cent " Energy Management Action Program" through which in customers and 3 6 per cent in population. commercial and industrial customers learned to Several very significant facts about the trends implement in-house energy management plans. Also
. of TP&L residential customer usage and cost of elec- through this program, a commercial audit form
- tricity are revealed by examination of the period was prepared to specifically apply to the Company's
' from 1951 to 1981. In 1951, the average cost was 4.08 service area.
. cents per kilowatt-hour, compared to 5.41 cents Through personal contacts with industrial cus-per kilowatt-hour in 1981, or an increase of 32.6 per tomers, the Company provided information regarding cent. The average annual residential electric bill was the efficient use of electrical energy and the poten-
- $51.57 in 1951 and $644.77 in 1981. The major tial for additional savings through altemate methods
' factor in the drastic rise in the amount of residential such as off-peak usage, interruptible contracts customer bills is increased usage. In 1951, aver- and cogeneration.
age annual usage was only 1,265 kilowatt-hours com- Building activity increased during 1981 because pared to 11,922 kilowatt-hours in 1981, an of record levels of commercial construction in the increase of 842 per cent. A chart on page 13 illus- TP&L service area. During 1981,59,077,400 square trates these trends. feet of new building area was constructed. This In April, the Company introduced the residen- represents a 2.2 per cent gain over 1980.
tial portion of "ExCELL," a program of " Excellence in TP&L Revenue Dollar Customer and Employee Load Leveling."
Basically, the program is designed to offer cus- WheWtCame Fmm tomers incentives to install certain energy-efficient maasdome '
equipment so that electrical energy can be co- i served as much as possible. Customers have baen ! [g given BONUS coupons when they install energy- =
efficient heating and cooling equipment. The value '"
of the BONUS coupons can be applied to payments =
of electric service bills. g By the end of the year,799 heat pumps and 609 g
, energy-efficient air conditioners were installed in =
, new "E-OK" homes. Customers placed 483 heat n n u .n 3 w .. . . _ . , ,
pumps and 2.296 high-efficiency air conditioners in . unlea==d=* mc-na='== con
- asis manoe=
existing homes, and installed 100 heat-recovery water heating systems through the "ExCELL Program." ' HowitWes Used The combined efforts of customers, builders, deal- ****"**
ers and employees resulted in "ExCELL" reducing I ,m, customer energy requirements by 7.598 kilowatts
_{ ' l !
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in 1981. l =
The Company mailed " Residential Conservation _.
l Service Program" announcements to all cus- i g tomers during September. Two hundred customer ser- !
=
vice employees, qualified by the state as RCS g' auditors, are available on request to perform energy =
audits, make recommendations for energy-con- nn . n w- -w .w .w w n -, ,
M Fumi MOpersaan end " ODepmoemon Mhas Q imoser on Doet. Puolened Divusandt Ete- feet M Common Dividends and fleessed m Businnes tot Espanoon The Stkowitz department store is the principal retail business of Stkowitz Village on the Parkway at Addison. The complex includts three restaurants, a cafeteria, a four-screen theater end more than 50 specialty shops and boutiques. 15
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Sixty three new industrial and office facilities chose ers. The handbook was designed to answer ques-TP&L service area locations. These facilities, tions regarding Company policies and practices.
when completed, will create more than 6,000 new job A "Special Friend" program was initiated to help opportunities in the service area and these new customers who may need assistance or special firms will add 56.690 kilowatts of load to the system, consideration in the payment of electric bills. Through The Company's Agri-Business Development staff this program, a customer may designate a "spe-cames on contirwing efforts in the interest of cial friend" who will help the Company contact the farming and ranching customers. During 1981, the customer and resolve any problems connected Company assisted in some 400 programs in co- with payment of an electric bill.
operation with the Texas A&M University System, other The news media provide valuable assistance to universities and colleges, and various agri-busi- Texas Power & Light Company in communications ness organizations. Gross agricultural income in 36 with customers. Company officials and the media counties surveyed annually by the Company was relations staff have a strong commitment to respond
$1,898.000,000 in 1981 compared to $1,762,000,000 quickly and accurately to requests from the media.
in 1980, an increase of approximately 8 per cent. The Company initiates stories on matters that are important to customers and TP&L.
Public Affairs During 1981, specially-trained Company per-The relationship between Texas Power & Light sonnel conducted more than 4,000 persons on Company and the people who live in its service area tours of operating lignite-fueled generating plants has been positive for many years. and the site of the nuclear-fueled Comanche Peak The Company follows a pokcy of being open plant which is under construction.
and honest with its various publics and constantly TP&L uses newspaper, radio and television strives to understand the needs and concerns of advertising, service bill enclosures and special mail-the people it serves. ings to keep its customers informed about the The Company has held 20 Consumer Representa. supply, cost and efficient use of electric energy.
tive Meetings throughout the service area since this program was begun in 1980. Texas Power & Light Employees President R. K. Campbell and other Company officials Recruiting capable employees, training and met with more than 300 people to hear their views continually upgrading the knowledge and skills of all and concerns about the Company's operations and personnel are matters of high priority at Texas relationship to customers. Power & Light. Dedicated and professionally-minded The purpose of these meetings is to increase people are essential to the efficient operation of understanding of customers' interests and to develop the Company and to supplying dependable electric Wdys to respond to their ideas and views. These service to customers.
meetings have been successful and they will be Employee productivity received special empha-continued. sis in 1981 as the Company's Productivity Consulting TPal works with youth and civic organizations, Team started numerous projects and received educational institutions and the news media to offer special training to increase internal consulting skills.
a better understanding of TP&L. Through these The 18 members of the consulting team conduct efforts, the Company is able to gain insight into con- productivity meetings throughout the Company's sumers' perception of its business. system to initiate and monitor programs which will The Company works with service area schools improve intemal communications and operating by making available more than 200 films, and numer- procedures. The team is establishing a number of ous booklets, brochures and study kits to pro- Quality Circles, groups of job-related employees who mote the understanding of energy production identify, analyze and help solve problem condi-and use. tions. These groups also make recommendations to in addition, the Company's " Energy, Environment Company management on matters which may re-and Economics," a demonstration-lecture pro- quire policy decisions.
gram, was presented in 144 schools to audiences of The productivity program anticipates making some 15,000 students during this past year. a significant contribution to improve operations in all A customer handbook printed in English and areas of Company business as emphasis is placed Spanish versions, was made available to all custom- on problem-solving by using the knowledge and skills of employees.
The 123-room Holiday Inn at Athens offers facilities and ser-vices for conventions and meetings as well as for traveler guests. Energy efficient construction helps assure economical operation of electric heating and air conditioning. 17
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At the end of 1981, the Company had 5,182 full- duced air infiltration and improved thermal integrity, time employees. This number includes 724 full-time TP&L completed the monitoring of eight active employees of Industrial Generating Co., a divi- residential solar water heating installations. All the sion of TP&L that operates TP&Lt Sandow Unit 4 data have been collected and the Company is and certain other generating and mining facilities now analyzing the results. TP&L will increase its owned by A! coa, a large industrial customer. monitoring of such insiallations to broaden the sam-For its employees, TP&L held 238 workshops and pie size. seminars conducted by the Training Department Work has started on the design and monitoring of staff or by professionals from outside the Company- passive solar installations. This work will also be ex-Eighty-four seminars were held at the Company's panded to a larger sample including heat pump, water training center at its Trinidad generating plant and heating and heat recovery water heating systems. Others were conducted at various locations in the The Company's study of air infiltration is in its service area. fif th year. Copies of the original air testing device This past year, total employee participation in these developed by the Company are now in use by major programs amounted to more than 6,500. Many universities, home builders, other power com-employees attended more than one training seminar. panies and individuals. Three times during 1981, Company employect As a result of this air testing experiment, at least reached the goal of working more than a million man- three energy-saving products have been de-hours without a disabling injury. More than 2,000 veloped and three firms now provide air infiltration field employees received Meritorious Safety Awards consulting services to our customers. for completing one or more years without a disa- The Company's air studies still are proving to have bling injury. Two employees received the award for a major impact on residential energy conservation 43 years of work without a disabling injury standards. During 1981,990 employees were trained in the The study of thermal integrity, the ability of a struc-National Safety Council defensive driving course, ture to retain conditioned air, continues to provide making a total of 3.346 employees currently qualified information on the effects of this type of conservation. through this program. Also,293 were trained in TP&L, along with more than 500 other energy-re-the American Red Cross First Aid Course, bringing lated organizations, supports the work of the the number of employees trained to a total Electric Power Research Institute (EPRI). Now in its of 1,480. eleventh year of operation, EPRI is involved in major For the sixteenth year, the Safety Audit Program, an research of solar, geothermal and nuclear fusion inspection of employee work habits, equipment energy. EPRI has budgeted funds of more than $1 and facilities, was conducted. The Company received billion from 1980 to 1984. awards from the National Safety Council, and The Since 1957 Texas Power & Light and Me other Texas Safety Association. Texas investor-owned utilities have sponsored the The Company's shareholders approved amend- Texas Atomic Energy Research Foundation (TAERF) ments to the Retirement Plan for Employees, effective Through TAERF, the companies support fusion re-
, July 1,1981. The amendments included provi- search at the University of Texas at Austin in its sions to increase benefits to certain retired partici- development of a nuclear fusion process.
pants to partially offset the effects of increases in Most notable among the accomplishments of the cost of living and other amendments that gener- TAERF is construction of the Texas Experimental ally simplified the plan. Tokomak, a fusion device that was placed in opera-As an Equal Opportunity Employer, TP&L will tion in early 1981. continue to seek the most effective utilization of all The Company knows that new ways of generat-employees through its Affirmative Action Program. ing electrical energy must be found and that more efficient uses of that energy are extremely benefi-cial, not only to TP&L, but also to all our customers. I Research and Development TP&L maintains its commitment to research and The Company's participation in certain areas of development of the technology to make this a reality technical research reflects the importance placed on development of new energy sources and the ap-plication of efficient new energy technologies. The thrust of this research is in the area of residential and commercial energy conservation through the use of solar energy. heat recovery water heating, re-NOLEACO, a manufacturer of Western-style belt buckles and leather items, is located at Sherman- O
Financial Stati; tics 1981 1980 1979 1978 1977 Total Assets end of year (thousands) $3,135,156 $2.790.527 $2.416.820 $2.107,413 $1,976,081 Electric Plant end of year (thousands) $3,478,003 $3.140.209 $2.729.803 $2.376.985 $2.078.257 Accumulated depreciation end of year 565_,510 494.911 433.158 377.346 325.776 Construction expend.tures (including allowance for funds used dunna construction) 352,110 409.806 356 603 295.180 275 966 Capitalization end of year (thousands) Long-term debt $1,099,450 $1.015.522 $ 949.644 $ 820.113 $ 815 047 Preferred stock 285,782 285.782 256.112 226.521 226.521 Common stock eauity 1,071,618 920.355 806.334 722.263 675.046 Total $2,456,850 $2.221.659 $2.012.090 $1.768 897 $1.716.614 Average _ interest Cost on Long Term Debt end_of. year 8.8% 80% 7.8% 7.6% 7.6% Average Dividend Cost on Preferred Stock end of year 8.0% 80% 7.6% 7.4% 7.4% Net income (thousands) $ 182,276 $ It .J $ 128.642 $ 123.086 $ 105,335 Dividends Declared on Common Stock (thousands) 53,756 75.864 65.194 59.040 54.050 Ratio of Earnings to Fixed Charges 4,1 3.9 38 4.1 3.7 Supplemental Ratio of Earnings to Fixed Charges
- 3.5 3.3 3.3 3.8 3.6 Allowance for Funds Used During Construction as
_ _ Percent of Earnings to Common Stock 27.1 % 27.0 % 21.8 % 17.1 % 23.3 % Return on Average Common Stock Equity 16.0 % 16 2 % 14.3 % 15.2 % 14.0 % Net Funds from Operations as Percent of Construction Expenditures (excluding allowance for funds used during construction) 48.1 % 44.0 % 46.4% 51 0 % 42 0%
*The supplemental ratio of earnings to fixed charges includes the Company's allocable portion of interest on Senior Notes of affiliated companies which provide services to the Company.
(* 20
Operating Statisti;s Year Ended December 31. 1981 1980 1979 1978 1977 Electnc Energy Generated and Purchased (MWh) Generated--. net station output _ _ _ _ _ . _ 28,754,607_ 28.431,111 2_S.952.023 _24.5_03.681_.22 119.340 Purchased and net interchance 167,205 218.847 729.425 1.412.136 759.767 Totaf generated and purchased _ , _ _ . _ 28,921,812_ _28 649 958 _ 26.681.,448 25.915._817 23.479,1_07 Company use. losses. and unaccounted for 1,774,361 2.182.539 1.881.667 1.930.139 1.670.311 Total ciectnc eneroy sales 27,147.451 26.467.419 24.799.781 23,985.678 21.808.796 Full Mix for Electric Generation Gas 42.2% 47.3% 46.4 % 53.0 % 62.6 %
- _ _. . _ . _ . __ _. _ _ . . _ _ ._ . 2 0_
Total 100.0 % 100 0 % 100 0 % 100 0 % 100.0 % Electnc Energy Sales (MWh) Residential 8,079,838 8.451.010 7.334.355 7.520.665 6.921.676 Commercial 5,281,545 4.975.135 4.451.990 4.338.257 4,045.638 Industnal 8,854,880 8.583.227 8.512,728 8.000.546 7.391.531 Govemment and municipal 923,882 943.792 845.800 880.988 809.213 Total general business . _ 23,140,1_4_5_ 22.953.164 21.144 873 _2 47_40.456 _ 19_.168 058 Other electnc utikties 4,007,306 3.514.255 3.654.908 3.245.222 2.640.738 Total electnc enerov sales 27,147,451 26.467.419 24.799.781 23.985.678 21.808.796 Operating Revenues (thousands) Res_idential . _ _ _$ 432,964 _ $ 380 564_ $_ 293,489 $_285 748_$_2_56.624 Commercial 273,054 224.116 185.750 168.904 144.185 Industnal 303,463 238.898 211.085 184.091 156.093 Government and municipal 43,719 35.983 28.587 26.902 23.208 Total general business 1,053,200 879.561 718.911 66L645 580.110 Other electnc utilities 131,236 96.882 82.715 70.828 58.075 Tu :l from electnc energy sales 1,184,436 976.443 801.626 736.473 638.185 Other operatino revenues (777) 15.712 7.991 6.835 7.019 Tota! cperatino revenues $1.183,659 $ 992.155 $ 809.617 $ 743.308 $ 645.204 Electric Customers (end of year) Residential 650,942 623.077 595.631 563,378 535 012 Commercial 82,411 80.517 78.553 77.371 74.327 Industna! 7,409 6.990 6.599 6.257 5.919 Government and municipal 7,773 7.619 7.346 7.061 7.121 Total general business 748,535 718.203 688.129 654.067 622.379 Other electnc utihties 34 35 35 30 29 Total electnc customers 748,569 718 238 688.164 654.097 622.408 fhsidential classification includes indirect sales (apartments. etc ); dwelling unrts not included in number of customers 40,065 42.523 43.560 47.656 52.585 Industrial classification includes service to Alcoa - Sandow (interruptibfe prior to May 1981).
._ .Electnc_ energy sales _(MWh)_ _ _ _ _ 2,848,997 2,918.794_._3 076 399 . _2,891.259___ 2.7_86.027 Operatino revenues (thousands) $ 64,016 $ 48.813 $ 48.400 $ 41.572 $ 36 878 21
Texas Power & Light Company Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Extemal funds of a permanent or long-term nature The primary capital requirements of the Company are obtained by the Company through the sale of for 1981 and as estimated for 1982 through 1984 are common and preferred stocks and long-term debt. as follows: The capitalization ratios of the Company at Decem-ber 31,1981 consisted of approximately 45% long-3 ea4 term debt,12% preferred stock and 43% common mm,vm o was' stock equity, and similar ratios are expected to be
$d[g maintained in the future. To provide for immediate AFUDC) $309,000 $34
- 000 $333 000 $344 000 Cash requirements during periods between long-term nuc' ear fuel -
~
10 000 23 000 23 000 financings, the Company obtains short term loans thvoes of ionq. from Texas Utilities, which has lines of credit with term deu ano commercial banks aggregating $300,000,000 at De-s.ns no fano cember 31,1981. The Company does not maintain reoa rer ents - 14 000 - 21 000 separate credit arrangements with banks or To!* $309.000 $368 000 $3% 000 $388 000 other lenders. The Company expects to sell additional securities For detail concerning major new construction work as needed, in amounts and of types presently un-now in progress or contemplated by the Company determined. Although the Company cannot predict and commitments with respect thereto, see future regulatory practices and is to some degree
" Construction". exposed to fluctuating economic and securities mar-The Company generates funds from operations ket conditions, it does not currently expect any sufficient to meet operating needs, pay dividends on changes in trends or commitments which might sig-capital stock and finance a significant portion of capi- nificantly alter its basic financial position or ability to tal requirernents. These funds are derived from net finance capital requirements in the future. (See income, depreciation, deferred taxes and federal in- " Rates, Regulation and Litigation".)
vestment tax credits. Factors affecting the ability of See " Financial Statistics" for additional information. the Company to fund a portion of its capital require-ments from operations include adequate rate relief Results of Operations and regulatory practices allowing a substantial por. Operating revenues have increased $191,504.000 tion of construction work in progress in rate base, for 1981 and $182,538,000 for 1980 primanly as a adequate depreciation rates, normalization of federal result of recovery of higher fuel costs on a current income taxes, current recovery of the cost of fuel basis and increased energy safes and rate levels. used in the generation of electricity and the oppor- (See " Rates, Regulation and Litigation" and "Operat-tunity to earn competitive rates of return required in ing Statistics".) Energy consumption is affected by the capital markets. For 1981, approximately 48% of matenal vanations in weather conditions and was par-the funds needed for construction was generated ticularly impacted by the relatively normal tempera-from operations. tures during the summer of 1981 compared to the unusually hot and dry summer of 1980, and by the relatively mild summer of 1979. i 22
Fuel and purchased power expense increased for Accountants' Opinion all periods as a result of higher unit costs of fuel consumed and increased generation. (See " Rates. DELOITTE HASKINS & SELLS
) Regulation and Litigation" and " Operating Statistics") Certified Public Accountants Operation and maintenance expenses have in-creased as a result of continuing inflationary pres. Texas Pbwer & Light Company:
sures on the cost of labor, materials and services and We have examined the balance sheet of Texas the additional lignite-fueled generating units placed Power & Light Company as of December 31,1981 and 1980 and the related statements of income, retained in service during 1981 and 1979; such expenses were also affected by the higher costs of operating and earnings and source of funds for construction for e9ch of the three years in the period ended Decem-maintaining existing lignite-fueled generating units, ber 31,1981. Our examinations were made in accor-including the additional costs of operating and main, taining the pollution control equipment required in dance with generally accepted auditing standards and, accordingly, included such tests of the account-connection therewith. Increases in taxes other than income resulted primarily from increases in revenue ing records and such other auditing procedures as we considered necessary in the circumstances. and property based taxes. , Increases in allowance for funds used during con _ in our opinion, the financial statements referred to above present fairly the financial position of the Com-struction are primarily attributable to increases in the AFUDC rate effective January 1981 and November pany at December 31,1981 and 1980 and the results 1979 accompanied by semi-annual compounding, of its operations and the source of its funds for con-struction for each of the three years in the period and increases in the level of construction work in ended December 31,1981, in conformity with gener-progress of the Company not allowed in rate base by regulatory authonties. Decreases in other income and ally accepted accounting principfes applied on a deductions - net reflect decrea: ed income from consistent basis. Alcoa for construction of generating facilities for 1981 DELOITTE HASKINS & SELLS and decreased interest income on temporary cash investments for 1980 Dallas, Texas The Company expects to pursue adequate and March 26,1982 timely rate relief in the future to offset the effects of increases in the costs of providing electric service. The Company has prepared supplementary infor-mation concerning the effects of changing prices in compliance with the reporting requirements of Finan-cial Accounting Standards Board Statement No. 33; such information is included beginning on page 32 following the Notes to Financial Statements. 23
Texas Power & Light Company ) Bal:nc3 Sheet ' l _Dec_ ember 31 Assets 1981 1980 (Thousands of DoHars) Electric Plant in service: Production $1,220,366 $ 951.311 Transmission 487,801 444.481 Distnbution 770,177 699.564 General 78,370 67.684 _ _._ . Total,_ _ , _ _ _ _ _ _ _ _ 2,5_56_,714 2.163.040 Construct !o_n workjn progress 885,512 938.997 Nuclear fuel 33,281 34.852 Held for future use 2,496 3.320 Total electnc plant 3,478,003 3.140.209 Less accumulated depreciation 565,510 494.911 Electnc plant. less accumulated depreciation 2,912,493 2.645.298 Other Investments 1,421 4.297 Current Assets Cash in banks 6,036 6.175 Special deposits 6,185 6.180 Temporary cash investments - at cost 54,736 - Accounts receivable: Customers 59,890 50.476 Other 15,316 10.627 Allowance for uncollectible accounts (2,987) (2.449) Inventones-at average cost: Materials and supplies 21,544 17,169 Fuel stock 22,927 21,111 Wo_rk! ng funds 14,600 12.521 Other current assets 16,733 13.569 Total current assets 214,980 135.379 Deferred Debits 6,262 5.553 Total $3,135,156 $2.790.527 See accompanying Notes to Financial Statements. 24
December 31. Llabilities 1981 1980 (Thousands of Donars) C:pitahzation Common stock (Note 3) $ 745,500 $ 660 000 Reta,eied earninos (Note 4) 326,118 260.355 Totai 1,071,618 920 355 Preterred stock (Note 3) 285,782 285.782 L ong terrn debt -less amounts due currently (Note 5) 1,099,450 1.015 522 Total car;tanzanon 2,456,850 2 221.659 Curr:nt Uabihties Notes payable - Texas Utdities Company (pa*ent)_ - 70.000 Long-term debt due current!/ 14,000 - Accounts payabie Affikates 36,012 35.009 Other 46,561 55,849 Dividends decla'ed 5,689 5.689 Customers deposits 8,024 7.223 Taxes accrued 73,322 47.176 Interest accrued 33,467 28.285 Other current hatshfies (Note 6) 105,118 6 522 Total current habdities 322,193 255.753 Res rve for Insurance and Casualties 2,149 1.621 Accumulated Deferred Federal income Taxes 167,616 141.849 Unamort!Ied FederalInvestment Tax Credits 186,348 169.645 Commitments and Contingencies (Notes 2 and 6) Total $3,135,156 $2.790 527 See accompanying Notes to Financial Statements 25 k
t Texas Power & Light Company Statements of Income Cnd Retained Earnings Year End_ed December 31 Income 1981 1980 1979 (Thousancs of Dona s) Operating Revenues $1,183,659 $992.155 $809.617 Operating Expenses F_ue.1 and purchased power 49_2,2_32 411,737 328.060 Operation __ _ 135,574 106.290 87.467 Maintenance 91,761 69.796 55.002 Depreciation 80,499 69.881 64.152 Federal income taxes (Note 7) 97,628 84.408 65.974 Taxes other than income 62,353 49.818 42.411 Total operating expenses 960,047 791.930 643.066 Operating Income 223,612 200.225 166.551 Other income
@owan_ce for equity funds used during construction _ _
32,685 27,788 17.499 Other income and deductions-net 10,602 19.403 19.569 Federal income taxes (4,926) (9.071) (9.091) Total ot.ier income ~ 38,361 38.120 27.977 Total Income 261,973 238.345 191.528 Interest Charges Interest on mortgage _ bonds 77,092 70.503 65.924 Interest on other long-ter_m debt 8,822 8.889 5.356 Other interest 4,303 7.287 932 Allowance for borrowed funds used dunna construction (10,520) (9.957) (6.326) Total interest charaes 79,697 76.722 65.886 Net income $ 182,276 $161.623 $128.642 Retained Earnings Balance at Beginning of Year $ 260,355 $196.334 $152.263 Add-Net income 182,276 161.623 128.642 Total 442,631 357.957 280.905 Deduct Dividends (cash) Preferred stock:
$4 senes ($ 4 00 per share per annum) 280 280 280 $ 4.44 senes ($ 4 44 per share per annum) 666 666 666 $ 4.56 series ($ 4.56 per share per annum) 610 610 610 $ 4.76 series ($ 4.76 per share per annum) 476 476 476 $ 4.84 series ($ 4.84 per share per annum) 339 339 339 $_7;24 senes ($ 7_.24 per share per annum) 1,810 1.810 1.810 $_7.80 senes ($ _7.80 per share _per annum) 2,340 2.340 2.340 $_ 8.16 senes ($ 8.16 per share per annum) 2,448 2.448 2.448 $_8 20 senes ($_8 20 per share per annum) 2,460 2,460 2.460 $ 8 68 senes ($ 8.68 per share per annum) 2,604 2.604 2.604 $ 8 84 senes ($ 8 84 per share per annum) 2,652 2.652 2.548 $ 9.32 senes ($ 9 32 per share per annum) _ 2,796 2.796 2,796 $1_0 92 senes ($10.92 per share per armum) 3,276 2.257 -
Common stock (per sha'e: 1981, $2.56: 1980. $2.24: 1979, $2.04) 93.756 75.864 65.194 Total dividends 116,513 97.602 84.571 Balance at End of Year (Note 4) $ 326,118 $260.355 $196.334 See accompanying Notes to Financial Statements. 26
i Texas Power & Light Company Statement of Sourco of Funds for Construction Year Ended December 31 1981 1980 1979 (Thousands of Dollars) Funds From Operations Net income _ _ _. _ _ _ _ _ _ . __ ___ _ . _ _ _ _ _ _ _ _ _ __ _ _$182,27_6 $_161.6_23 $128 642 Depreciatjon _ _ _ _._ ._ __. _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _._ _ _ . _80,499_ . _ 69 881 _ 64,15_2 Def, erred fed _eraljocome_ taxes _ _n_et___ ____ _ _ . _ _ ___ 25,7_67_ _ 33J5_2 _ 27,164 Federal investment tax credits-net 19,907 34.062 42.994 Allowance for funds used during construction (43,205) (37.745) (23.825) Total funds from operations 265,244 261.373 239.127 Less-Dividends declared: Preferred stock. . _ __ __ _____ .__ _ _ _ _ _ _22,7_57 21,738 19.377 Common stock 93,756 75.864 65.194 Total dividends declared 116,513 97.602 84.571 Net funds from operations 148,731 163.771 154.556 Funds From Financing Sates of secunties: First mortgage bonds 96,745 50.000 100.000 Other long-term debt __. 3,664 18.096 31.288 Preferred stock __ . _ _ __ _ _ _ _ . _ _ _ _ _ _ _ _ _ ___ _ _- ____2_9.670_ _29 591 Common stock 85,500 50.000 40.000 Retirement of long term debt (492) (1,603) (841) increase (decrease) in notes payable to Texas Utilities Company (parent) (70,000) 64.500 5.500 Net funds from financing 115,417 210.663 205.538 Other Sources (Uses) of Funds Changes in working capital. excluding notes payable and long term debt due currently: Cash in banks and temporary cash investments _ _ _ _ _ __ _ __ _ _ . _ (54,597) 1.559 2,559 Accounts receivable - net _.. _ . _ _ __ _ _ _ _ _ ___ _,_ _ ___ _ 13,565) ( (9.32_1) (7.219) Inventones (6,191) (6.498) (1,716) Ac_c_ounts_ payable _ (8,285) 8.614 12.025 Taxes accrued 26,146 27.710 (18,022) Advance payment on_ safe of electri_c plant _(Note _6)_ _ _ _ _ _ 90d_20 Other- net 8,911 (9.335) (1.158) Netchange 42,839 12,729 (13.531) Investment advances to affiliates 3,800 (1,800) (800) Nuclear fuel 1,571 (11.023) (6,447) Other- net (3,453) (2.279) (6.538) Net other sources (uses) of funds 44,757 (2.373) (27.316) Total $308,905 $372.061 $332.778 Construction Expenditures: Electncylant $352,110 $409,806 $356.603 Allowance for funds used during construction (43,205) (37.745) (23.825) Construction Expenditures (excluding allowance for funds used dunna construction) $308,905 $372.061 $332.778 See accompanying Notes to Financial Statements. 27
Trs Power & Light Company 1 Notes ta Fin:ncial St:t:ments
- 1. Significant Accounting Policies 2. Affiliates Dectnc Plant - Electnc plant is stated at onginal The Company is a subsidiary of Texas Utilities cost. The cost of property additions charged to e!cc- which provides common stock capital and short-term tric plant includes labor and matenals, appbcable financing to the Company Dallas Power & Light overhead and payroll-related costs and an allowance Company (Dallas Power) and Texas Electric Service for funds used during construction. Company (Texas Electric), whose respective systems Allowance For Funds Used Dunng Construction - are interconnected with that of the Company, are also Allowance for funds used dunng construction subsidiaries of Texas Utilities. Texas Utilities has (AFUDC)is a cost accounting procedure whereby three other subsidiaries which perform specialized amounts based upon interest charges on borrowed services, at cost, for the Texas Utilities Company funds and a return on other capital used to finance System, including the Company: Texas Utihties Ser-construction are charged to electnc plant. The ac- vices Inc. furnishes engineenng, financial and other crual of AFUDC is in accord with established ac- services: Texas Utahties Fuel Company (Fuel Com-counting practices of the industry, but does not pany) owns a natural gas pipeline system, acquires, represent current cash income Effective January 1, stores and dehvers fuel gas and provides other fuel 1981, the Company has capitalized AFUDC at a net of services for the generation of electric energy, and tax rate of 84% compounded semi-annually of ex- Texas Utihties Generating Company (Generating penditures incurred, except for that portion of con- Cornpany) acts in operating the jointly-owned gen-struction work in progress allowed in rate base by erating stations and furnishes related services, regulatory authonties. Beginning in November 1979, including the ownership and operation of fuel produc-AFUDC was capitahzed at a rate of 8%: poor thereto tion facihties for the surface mining and recovery of a rate of 7% had been used These rates were deter- hgnite for use as fuel at such stations mined on the basis of, but are less than. the cost of The Company, jointly with Dallas Power and Texas capital used to finance the construct i on program. Electnc, has entered into agreements with Fuel Com-Effective January 1,1982, a rate of 9% was adopted pany to procure certain fuels and related services Depreciation - Depreciation is based upon an and with Generating Company for the production of amortization of the original cost of depreciable prop- lignite fuel and the operation of electric generating erties on a straight-line basis over the estimated ser- stations, payments are at cost of the services vice hves of the properties. Depreciation as a percent received and are required by the agreements to be of average depreciable electric plant in service "at least equivalent in the aggregate to the annual approximated 3 6% for 1981,3 5% for 1980 and charge to income on the books" of Fuel Company 3 4% for 1979. and of Generating Company. The Company is, in Federallocome Taxes - The Company is included effect, obiigated for its share of the principal, in the consolidated federal income tax return of Texas $212.228.000 at December 31,1981, and interest on Utilities Company (Texas Utihties) and its subsidiary long-term notes of Fuel Company and of Generating companies, and federal income taxes are allocated to Company through payments described above. Such all subsidiary companies based upon taxab!c income notes mature at various dates through 1999 and have or loss Deferred federalincome taxes are generally interest rates ranging from 8.50% to 10 45%.
provided for differences between book and taxable For information concerning jointly-owned generat-income, such differences result primarily from the use ing stations, see " Construction". of hberahzed depreciation and accelerated cost recovery allowable under the Internal Revenue Code. Investment tax credits are being amortized to income over the estimated service hves of the properties. (See Note 7.) Reserve For Insurance and Casualties - The Com-pany, as allowed by regulatory authonties, maintains a reserve for major uninsured losses and claims. 28 L
- 3. Common and Preferred Stock Redemption Pnce Per Share (before Shares Outstand,ng Amount adding accumulated December 31, December 31, . _ divide _nds) _ . .
Eventual 1981 1980 1981 1980 Current Minimum (Thousands of Dollars) Common stock - without par value; authonzed 80.000.000 shares 37,350,000 34.350 000 $745,500 $660.000 Preterred stock - cumulative, without par value; ent.tted upon liquidation to $100 a share, autho-nzed 5.000 000 shares
$4 .senes _ __
_ 70,000 70.000 _ $ 7,000 _ $ _ 7_.000 _$.102.00_ _ $1_02.00
$ 4 44 senes _ __ _
150,000 150.000 15,061 _15.061. .__102;61 _ 102 61
$ 4 56 senes_ _
_ 133,786 133.786 _ _13,379_ . 13.379 _ _112_00_ _ 1_1_2.00
$ 4.76 senes 100,000 t 00.000 10,000 10.000 102.00 102.00 $ 4 84 senos _
70,000_ _ 70.000 __7,000 , _7 000. _ 101,79 _ 101.79
$ 7 24 senes __ .250,000 250.000 25_,113 25,113
_107.04 _ 103 42 _ 5 7 80 senes 300,000 300 000 30,030 3.030 105.20 103.25
$_816 ser.es _
_ 300,000 300;000 29,6_55 _ 29.655 ._10816'_ 1_02 04
$ 8 20 senes _ _ _ _
300,000 300,000__,_ 30,108 _ _30.108 _ 107 39 _ 103 29
$ 8 68 senes 300,000 300.000 _ 29,550 29.550 _ _106 2_6_ _ 101.92_ $ 8 8_4 senes _ _ _ . _
300,000 _ 300.000_ _.29,591 29.591 __ 10 M 7 9 02 q5_
$ 9 32 senes 300,000 300.000 29,625 29.625 106.99 102.33 $10 92 senes 300,000 300.000 29,670 29.670 110.92* 102.73 Total 2.873,786 2.873.786 $285.782 $285.782
- Redempt:on may not be effected currently through certain refund:ng operations.
The Company issued and sold shares of its autho- $32.239,000 of retained earnings was thus restricted rized common stock to Texas Utilities as follows: as a result of the provisions of the articles March 1981,3,000.000 shares for $85.500,000, Feb- of incorporation. ruary 1980, 2,000,000 shares for $50,000,000, and The articles of incorporation restriction provides, in February 1979,1,600,000 shares for $40,000,000. effect, that the Company shall not pay any common The Company also issued and sold shares of its dividend which would reduce retained earnings to authorized preferred stock as follows: May 1980, less than one and one-half times annual preferred 300,000 shares of $10.92 preferred stock for dividend requirements. The mortgage restriction is $29,670,000; and February 1979,300,000 shares of based primarily on the replacement fund require- $8.84 preferred stock for $29.591,400. ments of the mortgage. The restriction con'ained in No shares of the Company's common or preferred the debenture agreements is designed to maintain stock are held by or for account of the Company, nor the aggregate preferred and common stock equity are any shares of such capital stock reserved for at or above 33h% of total capitalization. officers and employees or for options, warrants, con-versions and other rights in connection therewith.
- 4. Retained Earnings Restrictions The Company's articles of incorporation, the mort-gage, as supplemented, and the debenture agree-ments contain provisions which, under certain conditions, restrict distributions on or acquisitions of its common stock. At December 31,1981, 29
- 5. Long-Term Debt (less amounts due currently) Sinking fund and matunty requirements for the years 1982 through 1986 under long-term debt instru-December 3t g--- g ments in effect at December 31,1981 were as follows:
M.n rnum Cash , (Thousands d Dodars) sinking Ma'urty Requee-Fur *dfa) (see atxwet rnent(aXtd First mortgage bonds. 3%% mes due 1982_ __ $ , 5 14.000 (Thousands of DoMars) 3%% senes due 1984 __ _20,000 _ 2_0_000 year 10,000 10.000 1982 54 253 514.000 514.000 4%% seres duc 1986 12,500 12.500 1983 5 123 - 120 4%% seres due 1988 12,000 12.000 1984 7.103 20.000 20.900 4%% seres due 1991 10,000 10 000 1985 7.103 - 900 4%% seres due 1993 14 000 1986 7.103 10 000 10 900 4%% senes due 1995 14.000 20,000 20.000 (a) Exclud.ng amounts sabsfed pnor to December 31,1981. 5 % seres due 1996 30,000 30 000
$mM for B82 and $780 @ for 083 5%% series due 1997 (b) Other requirements may be satsf.ed by certificabon of property 6%% senes due 1998 25,00_0 .__ _25 000 additions at the rate of 167% of such requirements 8%% seres due 2000 30,000 30.000 30,000 The total amounts of Sinking Fund Debentures au- !
8%% seres due 2000 30.000 thorized in the debenture agreements have been is-7%% seres due 2001 30,000 30.000 sued. The Company's First Mortgage Bonds may be 7%% seres due 2002 40,000 40.000 issued in additional amounts, without limitation as to 50,000 50 000 7%% senes due 2003 the maximum thereof, but limited by property earn-50,000 50 000 _8%% senes due 2004 ings and other provisions of the mortgage. None of 10%% senes duc 2004 50,000 50.000 the long-term debt is pledged, held by or for account 9%% senes due 2005 100,000 100.000 of the issuer, or held in its sinking or other special ' 8 60% seres due <006 100,000 100.000 funds. Substantially all of the electric plant is subject 8%% seres due 2007 100,000 100,000 to the lien of the mortgage. 9%% seres due 2009 100,000 100.000
- 6. Commitments and Contingencies 11%% senes due 2010 50,000 50.000 For major new construction work now in progress or 17%% senes due 2011 75,000 -
contemplated, and commitments with respect 13 % 1 bon Control Senes A thereto, see " Construction".
.510 -
The Company, Dallas Power and Texas Electric Funds on deposit with trustee (12,765) - have entered into contracts with public agencies to Tdal 980.245 897.500 purchase cooling water for use in the generation of Pollution control revenue bonds electric energy and have agreed, in effect, to guaran-7%% seres due 2004 15,000 15.000 tee the principal and interest on bonds issued to 6%% seres due 2006 32,385 32.385 finance the reservoirs from which the water is sup-5 70% senes due 2007 11,235 11.235 plied. At December 31,1981, the Company is obli-6 60% series due 2008 4,890 4 890 gated for $93,303,000 principal amount of such 7%% senes due 2009 35,000 35 000 bonds, which mature at various dates through 2011 Funds on deposit with trustee (6,777) (10.441) and have interest rates ranging from Sh% to 10%%. 91,733 88.069 The Company is required to make periodic payments Total of such principal and interest for the years 1982 sinking fund debentures 6,666 6,711 through 1986 as follows: $8,128,000 for 1982, 4%% due 1987 10,526 10,773
$8,128,000 for 1983, $8,103,000 for 1984, $8,105,000 4W%. due 1989 for 1985 and $8,076,000 for 1986. In addition, the b%. due 1994 16,028 16.228 Company is obligated to pay certain costs of operat-Ta i 33,220 33.712 ing and maintaining the reservoirs. For 1981 the Com-Unamortized discount (5,748) (3,759) pany's total payments, including amounts capitahzed.
Total long-term debt were $3,041,000. Amounts payable under the con-(less amounts due currently) 51,099.450 $1.015.522 tracts may be reduced, under certain circumstances, due to the sale of water to nonaffiliate parties 30
In January 1981, the Company completed an Federal income taxes were less than the amount agreement to sell a 4h% undivided interest in the computed by applying the federal statutory rate to Comanche Peak station, nuclear fuel and associated pre-tax book iocome as follows: transmission facilities to Tex-La, with such sale sub-ject to regulatory approvals and Tex La's ability to je r Ended December 31 obtain long-term financing arrangements. The Com- 81 1980 1979 pany received approximately $90,000,000 from Tex. (mousanos os oonars) Fede a ncome taxes at statutory La for that portion of the plant and related facilities completed through December 31,1980, which is in-cluded in Other Current Liabilities. Commencing in dsa ncome Redujon$
,, e g, January 1981, Tex-La has paid its pro rata share of the Allowance for funds used construction costs of the facilities. In January 1982, dunng construction 19,874 17.363 10 959 Tex-La notified the Compan'/ that it had been unable Depiction allowance 6,301 3.482 2.859 to obtain long term financing in an amount sufficient Amortization of investment to support a 4h% participation and requested that tax cred.ts 4,574 3.698 3.145 consideration be given to reducing such participation otner (2.281) (675) 1.677 to 2%%. In February 1982, the Company concurred in Totai reductions 28,468 23 868 18.640 the Tex-La request by agreeing, subject to regulatory Total federal income taxes $102,554 $ 93.479 $75.0G5 approvals and the completion of Tex-La's long-term financing arrangements, to assume the 2%% owner. Effective tax rate 36.0 % 36 6 % 36 9 %
ship interest released by Tex-La. As a result, the Company will refund approximately $65,000,000 for 8. Retirement Plans that portion of costs and interest expended by Tex-La The Company has uniform retirement plans cover-for the 2%% interest assumed by the Company. ing substantially all employees. The costs of the plans The Company is involved in various legal and ad- are determined by independent actuaries and are ministrative proceedings (see " Rates, Regulation and funded by the Company as accrued. The costs of the Litigation"), and while the Company cannot predict plans, including amounts capitalized, approximated the final results, such proceedings, in the opinion of $10,455,000 for 1981, $8,628,000 for 1980 and the Company, are not expected to have a material $7,038,000 for 1979. As of the latest annual valua-effect upon the financial position or results of opera- tions in 1981 and 1980, accumulated benefits and net tions of the Company. fund assets were as follows:
- 7. Federalincome Taxes 12 1980 The details of federalincome taxes are as follows: (mousanos of Donars)
Actuanal present value of accumulated plan benefits
-~ Year Ended December 31.
Vested $88,677 $83.050 j981 1980 1979 Nonvested 8,699 8.181 (mousanos of Donars) Charged to aperating expenses Total $97,376 $91.231 Current le deral income taxes S 43,397 $ 18.510 $(3.669) Net fund assets $86,952 $70.130 Deterreo teceral income taxes
- net.
01tterences between An assumed rate of return of 5%% was used in depreciation methods determining the value of accumulated benefits. and hves 29,962 26 706 22.328 Certa n cap:tahzed
. p nstructon costs _ __ 3 4,7_11 _ _ 5 301_ 4 616 Other (349) (171) (325)
Total 34,324 31.836 26.649 investment tax cred.ts -- net 19.907 34 062 42.994 Total tederal incorne taxes charged to operat;ng expenses 97.628 84.408 65 974 Charaed to other income 4,926 9.071 9 091 Total federal income taxes $102,554 5 93.479 $75 065 31
Supplementary information Conc;rning Effects of Changing Prie:s Unaudited information fumished in compliance with Depreciation on the constant dollar and current the reporting requirements of Financial Accounting cost basis was determined by applying the Com-Standards Board Statement No. 33. Financial Report- pany's straight-hne depreciation rates used for finan- ) ing and Changing Pnces (FASB 33). follows. The cial accounting purposes to the appropnate indexed Statement indicates the need for experimentation in electric plant amounts, and is the only income state-providing information about the effects of changing ment item that has been restated from the Financial pnces. Such information is intended to help readers Statements In compliance with FASB 33, no adjust-better understand the impact of inflation on the Com- ment has been made to federal income taxes. pany Because the information is presented on an Under rate-making ru!es prescnbed by the Public expenmental basis. it should be viewed with caution. Utihty Commission of Texas, only the onginal cost of Calculation of the information inherently involves the electric plant is recoverable through revenues as de-use of assumptions, approximations. and estimates preciation. Therefore, the excess of the cost of plant and, therefore, the resulting measurements should be stated in terms of constant dollars and current cost considercd in that context and not as precise indica- over the onginal cost is not recoverable through rates tions of the effects of inflation. The effects of chang- as depreciation and is reflected as Reduction to Net ing prices are not recognized for income tax or rate- Recoverable Cost of Electric Plant. The Company making purposes, therefore the supplementary infor- beheves, based on past experiences, that it will be mation should not be interpreted as adjustments to allowed to recover the investment in electnc plant earnings reported in the Financial Statements. when replacement of facihties actually occurs Information concerning the effects of generalinfla- During penods of inflation, the holders of monetary tion (constant dollar) was determined by converting assets suffer a loss of general purchasing power histoncal cost amounts into dollars of equal purchas- while holders of monetary liabihties experience a ing power. as measured by the Consumer Pnce Index gain. The amount shown as Gain From Dechne in for All Urban Consumers. Purchasing Power of Net Amounts Owed reflects the Information concerning changes in specific prices net of these two items and is primanly attnbutab!e to (current cost) represents such changes in electric the substantial amount of long-term debt which has plant from the date costs were initially incurred to been used to finance electric plant. Since deprecia-present, and differs from constant dollar information tion on tnis electric plant is limited by regulations to to the extent that the specific pnces have increased the recovery of histoncal costs, a holding gain on at a rate different than the general rate of inflation. debt is not ahowed and recovery is limited to only the The current cost of electric plant was computed by embedded cost of debt capital. To reflect the results indexing the existing histoncal cost of plant by the of rate regulation. Gain From Decline in Purchasing Handy-Wh.tman Index of Public Utihty Construction Power of Net Amounts Owed is offset by the Reduc-Costs for the South Central Region and other appro- tion to Net Recoverable Cost of Electric Plant. priate indices. Such current costs are not necessanly representative of the replacement cost of the Com-pany's productive capacity that might be incurred in a future penod. 32
r Supplementary Information Concerning Effects of Changing Prices (Continued) Summary of income Adjusted for the Effects of Changing Prices For the Year Ended December 31,1981 (Thousands of Dollars) Histoncat Cost Adjusted for Changing Prfces Reported in General inflation Specific Pnces Financial Statements (Constant Dollar) (Current Cost) (Averago 1981 Dollars) Operating revenues
$1,183.659 _$1.183.659_ _ _ $1.1_83.659 Operatino expenses (a) 960 047 1.034.944 1.043.392 Operating income _ 223 612 _ _ _ _ 148.715 _ ___140 2_67 Other income 38.361 38.361 38.361 Total income _
261.973 , _187,07_6 _ _ _. 178.62_8 _ Interest charges 79 697 79.697 79.697 Net income $ 182.276 $ 107.379 $ 98.931 Increase in specific pnces of elecinc plant held dunn_g the year (b)_ . __ _ _ _ $ 375.667 Reduction to net recoverable cost of electnc plant _ .$ (162.576). (111.755) Effect of generalinflation on electnc plant (418 040) Effect of general inflation in excess of increase in specific pnces of electric plant after reduction to net recoverable cost . _ _ ___ _ _ _ _ , _ _ _ _ . .Q54.128) Gain from decline in purchasino power of net amounts owed 128 244 128 244 Net chanqe in purchasino power $ (34.332) $ (25 884) (a) includes depreciation amounts of $80 499.000 for histoncal cost. $155.396.000 for constant dollar, and $163.844,000 for current cost. (b) At December 31.1981 electnc plant, net of accumulated depreciation was $5.182.901.000 for current cost and
$2.912.493.000 for histoncal cost.
C:mparian of Selected Financial Data Adjusted for Effects of Changing Prices 1981 1980 1979 1978 1977 (Thousands of Average 1981 Dollars) Operating revenues _
$1,1_83,659 $1.095.069_ _$1. 014.442 $1.036.210_$968.339 Constant Dollar Information Net income 107,379 109 643 102.82_1__ __ __ ,_
Net assets at year end at net recoverable cost 1,313,520 1.271.485 1.258.853 Current Cost Information i Net income 98,931 97.553 85.068 _ , _ . , Effect of general inflation in excess of increase - in specific pnces of electnc plant after reduction to net recoverable cost ,_ _(154,128) . _ 236.5_73).. ( _259.399) ( . _. _ . _ _ _ Net assets at year end at net recoverable cost 1,313,520 1.271.485 1.258.853 General Information Ga:n from decline in purchasing power _.0I. net am,ounts owed _ _ _ . 128,244 17_1.853 _ 178,487_____ _ _ _ _ . _ _ , Consumer Pnce index - average 272.4 246 8 217 4 195 4 181.5
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Prectors Officers " i
~ . A. Anderson Palestine, Texas J.F.Skelton , Chairn,an of the Board - 'wner. The "K" Way Equipment Company R.K.CampbJt President and Chief Executive , . L. Ashcrof t, Jr Sulphur Springs, Texas Gerson Berman , Vice President ner Ashcroft Motor-Investment Company Thomas E. Blakey' Yce President L. Austin. Jr Dallas. Texas W. H. Goodt Cough hartman of the Board and Chief Executive. Vce President Texas Utihties Company Louis W Howard Vce Presiden:
homas W Baker Nacogdoches, Texas Leon Loveless- Wce President , shairman of the Board. Joe M. Ncison
- Vc: Presid3nt ,
Commercial National Bank E. C. StanpM Vce Pr;jdent Thomas E. Blakey Dallas, nexas - Mce President of the Company Charics '..i McCarter Secretary and Assistant Treasurer Frank A. Blankenbeckler, Jr Waxahachie. Texas Gary L. Once Treasurer and Assistant Secretary - Chairman of the Board. W. M. McDonough, Jr. Assistant Treasurer ' Ellis County Savings Association , R K. Campbell Dallas, Texas , President and Choet Executive of the Company Executive Committee
- Ben H. Carpenter Dallas. Texas President and Chief Executive Ottocer, K. A ihderbn John M. Gdffith ',
Southtund Financial Corporation . T. L. Austin Jr. Charles F. Hawn Marvin Gibbs Paris, Texas R.K.Campbel '# J. F. Skelton - l President, Fry & Gibbs Funeral Home , Sw H Carpenter John M. Griffith Taylor. Texas * ^ Chairman of the Board. City National Bank ; Charles F Hawn Athens, Texas / President. Hawn Lumber Company. Inc. R. L Poland Lufkin, Texas This repon ,lnd the financial statements contained Pmsident and Chief Executive Othcer. herein are submitte.d for the general information of the tutA,n todustnes. loc. stcckhdders of Texas Power & Light Company. They James A. Ratteree Dallas, Texas are not presented in connection wttany sale or offer Investments to sell, or hny solicitation to buy, any secunties. R. E. Roberts Cleburne. Texas Chairman of the Board and Chief E>ecutive Othcer. Rangaire Corporatton Transfer Aogrt (for Preferred Stocks) B. Lynn Sanders, Jr. Corsicana. Texas Wercantiie' National Bank at Dallas President. Corsicana Grain and Elevator 'fa,{ts, Texas Company. Inc p J. F. Skelton Dallas, Texas Registy. (for Prharred Stocks) Chairman of the Board of the Company ReptiblicBKA Dallas, N A. C. Truett Smith Wylie, Texas Dallast Texas President, First State Bank , John A. Warner Tfler, Texas Trustee (for Mongage Bonds) President and Chief Executive Ottocer, RepubicEank Dallas, N. A. Tyler P!pe Industries, Inc- Dalis, Texas Joe N. Weatherby Brownwood. Texa', , President and Manager. Trustee (far Debentures) weatherby Motor Company. Inc.
' f First National Bank in Dallas Dallas, Texas . 4 Trustee \10rIr"nployees' Retirement Fian)
RepubhcBank Dallas. N.A. Dallas. Texas General Offices ibn Bryan Street Datas. Texas 75201 i m. (214) 7 4 6 411 b 6 *
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- System Map Legend Generating Stations - Jointly Owned by Texas Power &
7 Trlimap of the Company's service area shows Light, Dallas Power & Light and Texas Electric Service
,i genciating stations, major transmission lines and towns O Lignite-fueled. Operating in which a Division, District or Local Office is located. O Lignite-fueled, Under Construction @ Nuclear-fueled, Under Construction . Town w.th i Company Office Generating Stations - Owned byTexas Power & Light Texas E e t c rv e E Gas fueled. Operating EEGasiOil-fueled Operating L,gD G Lignite-fueled. Operating Transmission Lines Generating Stations - Jointly Owned by Texas Power & 345 KV '
Light and a large industrial customer 138 KV
<& Lignite-fueled, Under Construction 69 KV l /
e 36 1
i l Nk Texas Power & Light Company Atax-paying, investor owned electric utthty i l}}